Committee recommends reappropriating $8.161 million in school bond savings to capital projects

The Gardner City Finance Committee voted Jan. 15 to recommend that the full city council reappropriate $8,161,000 in unspent school bond proceeds to other capital projects.

A city finance presenter told the committee the school replacement project came in just over $8 million under the authorized loan amount and that the Massachusetts School Building Authority (MSBA) reimbursed about 80% of eligible costs. "The school building project came in just over $8,000,000 under budget," the presenter said.

Bond counsel and city staff told the committee state rules require a project to have a minimum 30‑year useful life to receive reappropriated bond proceeds on the same loan; to meet that requirement, bond counsel asked for engineer‑stamped letters certifying a 30‑year lifespan. The presenter said state law limits the maximum loan term for different asset types (for example, paving up to 10 years, outdoor recreational facilities up to 15 years, and equipment up to 20 years), so projects selected for the reappropriation were reviewed by the city's engineers and bond counsel.

Projects on the proposed reappropriation list include building renovation work across city departments and reimbursement of a school auditorium improvement project that had expenses paid from the school choice account. The presenter said about $1.5 million already expended on the auditorium is an eligible cost to be reimbursed; roughly $500,000 in loan proceeds was left unallocated as a contingency.

The presenter explained the administrative process if bids come in under or over estimates: most projects would go out to public bid after council approval, and any remaining funds could be proposed later for reallocation. If a project bids over the available appropriation, the administration would return to the council for supplemental approval.

Councilors expressed support for using the savings to address long‑deferred building repairs, asked technical questions about specific line items (for example, clarifying "storefront" referred to a main entrance), and noted that electrical upgrades and lead times for equipment procurement will require planning. The committee moved the recommendation to the full council; the motion passed by voice vote and no roll call tally was recorded.

The City will present the order to the full council for final approval and then proceed to bid eligible projects as required by procurement rules.